India’s specialty coffee market is getting bigger, and Blue Tokai is growing with it. The Gurugram-based coffee chain crossed ₹500 crore in annual operating revenue for the first time in FY26, registering nearly 60% growth over the previous fiscal year. The milestone marks another significant step in the brand’s expansion, even as higher operating costs continue to weigh on its bottom line.
Blue Tokai’s revenue from operations increased 59.4% to ₹518 crore in FY26, compared with ₹325 crore in FY25. Including ₹7.5 crore in other income, its total income reached ₹525.5 crore during the year ended March 2026.
Coffee and related product sales continued to drive the business, contributing ₹513 crore, up from ₹322 crore in the previous fiscal year. The figures reflect the growing scale of the company’s coffee retail and product business as organised café consumption gains traction in India.
Revenue Growth Comes With A Higher Cost Base
The expansion, however, has also brought a larger operating cost base. Blue Tokai’s total expenses increased 61.7% to ₹608 crore in FY26, outpacing its revenue growth.
Cost of materials consumed, its largest expense component, rose 65.5% to ₹187 crore. Employee benefit expenses increased 35.9% to ₹130.5 crore, while rent expenses climbed 59.6% to ₹26.65 crore.
Depreciation nearly doubled to ₹87 crore, reflecting a heavier asset and expansion-related cost burden. Finance costs also increased 68.8% to ₹27 crore, while other expenses rose 70.5% to ₹150 crore.
Despite the higher expenditure, Blue Tokai’s EBITDA improved to ₹23 crore from ₹19.4 crore in FY25. However, its EBITDA margin moderated to 4.44% from 5.97%, indicating that revenue growth has yet to translate into stronger operating margins.
At the net level, losses widened 53.7% to ₹83 crore from ₹54 crore. The company also reported a negative return on capital employed of 11.94% and cash and bank balances of ₹39 crore, compared with ₹118 crore a year earlier.
The numbers point to a business that is expanding its revenue base while still working towards better cost efficiency and capital utilisation.
Blue Tokai’s Next Growth Phase
Blue Tokai is entering this phase with ambitious expansion plans. In July 2026, co-founder and CEO Matt Chitharanjan outlined plans to increase the company’s store network from around 240 outlets to 800 by FY30. The chain was also targeting approximately 120 new stores during FY27, alongside an expansion into international markets beginning with Dubai.
The company has also indicated March 2028 as its target for achieving profitability.
The opportunity is supported by India’s still-developing organised café market, where specialty coffee brands are competing for a larger share of urban consumption. Blue Tokai faces competition from Third Wave Coffee, Tata Starbucks, Café Coffee Day and Barista, among others.
For perspective, Tata Starbucks reported ₹1,367 crore in operating revenue in FY26 and narrowed its net loss by around 27% to ₹98.95 crore. The comparison highlights the difference in scale between established café networks and emerging specialty coffee players.
For Blue Tokai, the next milestone will not simply be crossing another revenue threshold. It will be converting its expanding store network, growing customer base and higher sales into more efficient operations.
The ₹500 crore mark establishes how far the business has scaled. The challenge now is to make that scale increasingly profitable.
Source: Based on consolidated financial statements reviewed by Entrackr, company management commentary reported by Business Standard (Bloomberg) and industry coverage by Financial Express.
